Saving money is not as easy as others might say it would be. In fact, saving to reach a certain goal requires discipline and determination when it comes to diligently setting aside a portion of your income. It can be achieved by making well-thought out and careful decisions in managing your finances. Here are a few tips you can follow for you to save smarter.
1. Bring only what you need
The key to making sure you’re not spending more than you should is to only bring enough money with you whenever you go out. This can be done by planning ahead of your errand day or shopping trip. Make a list of everything that you need to purchase and stick to it. Factor in other expenses you might encounter like restaurant meals and transportation costs. Stick to your budget and you’ll see how much you can save after your trip.
2. Avoid shopping with your credit card
A study conducted by Dun & Brandstreet concluded that people who shop using a credit card spend at least 12-18% more than people who shop using cash. This is likely due to two reasons. First, using your card to pay for your purchases does not feel as financially burdening as using cash. You don’t see your bank account dwindling down, only a credit card bill getting higher which you’ll only see by the end of the month.
Secondly, paying for big ticket items in installments using your card drives up the original price of the item. This is because merchants and credit card companies have to make up for the risk of people who might default their credit card dues, hence, the added costs. If you can, purchase items using cash or your debit card for better control on your financials.
3. Practice the Seven-day Rule
Avoid impulse buying by setting a “cool down period” before actually making a purchase. Try practicing the seven-day rule where you wait for seven days before you actually decide on buying something. If you still feel the urge of buying the item after the cool down period, only then should you make the purchase. By practicing this rule, you will be able to determine if your purchase is something that’s necessary or something that you’re sure you want.
4. Shop to save
Shopping is definitely unavoidable. That’s why store sales are the best bet when it comes to saving a little money when you need to purchase your essentials. However, make sure that that huge discount won’t push you to buy things that you don’t need. Buy sale items only when you need them or when you have been planning on buying them anyway.
Additionally, consider buying items that are not branded or are on discount. More often than not, name brand products usually come up with versions that are more affordable but have the same quality than their more expensive counterparts.
5. Save to Earn
Lastly, make sure that you keep your savings from staying stagnant. Take advantage of high interest offers from banks like CIMB’s UpSave account. Enjoy 4% p.a. interest in your savings in two ways. You can grow your average daily balance (ADB) monthly by P1,000 or you can maintain a minimum of P100,000 in your account to experience the best-in-market interest rates. PLUS, if you choose the latter, you can get Life Insurance coverage of up to P1,000,000 for free.
Take a step towards your dreams and practice smart saving to reach your life goals. Make the most out of your savings with CIMB Bank!
Visit the link below to find out more about our UpSave account